Large transactions (whales) in Bitcoin and Ethereum are at their lowest levels in 2023, indicating a consolidation phase, while long-term Bitcoin holders continue to accumulate.
- Bitcoin and Ethereum are trading within a specific price range, signaling a consolidation phase.
- Santiment’s on-chain data shows large transactions (whales) are at their lowest in 2023, suggesting whales are waiting for the right moment.
- Long-term Bitcoin holders control 70% of the total supply, implying strong accumulation.
- Analysts identify potential Bitcoin price targets, while a significant bullish bet on Ethereum has been made by a whale.
The cryptocurrency market is currently in a consolidation phase, particularly for leading cryptocurrencies Bitcoin and Ethereum. Santiment, an on-chain analytics firm, has highlighted interesting patterns: whales (large holders) appear to be patient, while long-term Bitcoin holders are in an accumulation phase. This article aims to delve deeper into these trends and what they signify for the market.
🐳 #Bitcoin continues to trade between $26K-$27K, and #Ethereum at $1.6K to 1.65K. #Crypto's top market caps' $100K+ transaction levels are at their lowest levels of 2023 right now. This is a sign of whales likely waiting, and not necessarily disinterest. https://t.co/FKfhB5X3Yh pic.twitter.com/m9990wqlpM
— Santiment (@santimentfeed) September 18, 2023
Waiting for the Right Moment: Whales Hold Off
Santiment’s data shows that large transactions, specifically those exceeding $100,000, are at their lowest point in 2023. While this could easily be misinterpreted as disinterest, Santiment posits that these large holders are merely waiting for the right opportunity to enter or re-enter the market. In volatile markets like cryptocurrency, timing is often more important than immediate action. The current trend suggests that these large holders may be looking for either a price dip as an entry point or a confirmed trend before making significant moves.
Long-Term Holders Keep Accumulating
In contrast to the patient whales, long-term Bitcoin holders—defined as those whose average purchase date is over 155 days ago—are actively accumulating. Remarkably, they control around 70% of the total Bitcoin supply, translating to 14,787,265 BTC. Moreover, over 57% of Bitcoins have not moved in more than two years, further underlining the strong trend of accumulation. This could be indicative of a collective sentiment among long-term investors that Bitcoin has substantial growth potential in the long run.
The Current State and Potential Targets for BTC
As of this writing, Bitcoin is trading at $26,865—a marginal increase over the past 24 hours. Analysts, like Ali, suggest that if buying pressure in Bitcoin continues to rise, we could see price levels hit $28,000 or even extend to $31,000. The flip side, however, is also true: a drop below the $24,500 mark could invalidate this bullish narrative, opening the possibility for lower lows.
Ethereum Whale Makes a Big Move
In the Ethereum corner, a significant development has been observed. A whale recently made a $150 million bullish bet, buying a substantial amount of notional ETH calls. This buying activity suggests long-term bullish expectations and could be a bellwether for Ethereum’s future price trajectory.
To Sum it All Up….
While Bitcoin and Ethereum appear to be in a consolidation phase based on their price actions, the underlying currents reveal more. Whales are showing patience but are not necessarily disengaged. On the other hand, long-term Bitcoin holders are accumulating at a consistent pace, suggesting a bullish long-term outlook for the cryptocurrency. As regulatory landscapes evolve and the crypto market matures, it will be fascinating to see how these large holders influence market trends. Their decisions, combined with other macroeconomic factors, could play a pivotal role in shaping the next market cycle.